Morgan Stanley in preliminary deal to settle SEC probe
February 25, 2014 4:54PM
Updated: February 25, 2014 4:54PM
NEW YORK (AP) — Morgan Stanley says it has reached a preliminary agreement with the Securities and Exchange Commission to settle an investigation into the investment bank’s subprime mortgage business.
Morgan Stanley has agreed to pay $275 million in fines to settle the investigation, according to a regulatory filing made late Tuesday. The SEC has not agreed to the settlement yet, and the bank said it had no assurances that the $275 million settlement would be approved.
The bank reached the preliminary agreement on Jan. 30, it said, and would not admit and deny wrongdoing as part of the agreement.
The SEC has been investigating Morgan Stanley, like many other Wall St. firms, for their practices leading up to the subprime mortgage crisis of 2007.